Top related searches:
- Best mortgage rates
- First-time buyer mortgages
- Property for sale
- Mortgage lenders
- Personal loans
- Property market
- Flats for sale UK
- Part-rent property
- Property auctions
Those looking to get that first step on the property ladder now need the equivalent of 87 per cent of the average salary, compared to just 41 per cent four years ago.
Back in 2007, the average deposit needed was £12,000 but today that figure is around £26,000, leaving many young people to turn to mum and dad for help.
In the wake of the credit crisis, mortgage lenders are taking an increasingly careful stance and higher deposits are now the "biggest challenge" faced by first-time buyers.
The CML explained: "We do not expect there to be a significant increase in first-time buyer activity in 2011 or 2012. The reality for first-time buyers is that, although there is widespread sympathy for their plight, they are only one of a number of different types of consumer who are experiencing difficulties in challenging housing and mortgage market conditions."
What do you think? Should mortgage lenders reduce deposit costs for first-time buyers in a bid to get the property market moving? Leave a comment below...